Restaurant owners say inflation forcing $17 for…
Diners already involved about the associated fee of eating out could also be disillusioned to study that many eating places are contemplating raising costs to keep up with inflated food and drink prices.
Restaurant management software program company Toast lately launched its 2025 Voice of the Restaurant Industry Survey, revealing that bettering profitability was the top concern for operators headed into next 12 months.
Operators ranked inflation (20%), advertising and marketing (16%) and hiring (16%) as their top three business pain factors.
Nearly half of all 712 restaurant decision-makers surveyed (48%) said they plan to increase menu costs if inflation continues to be a issue.
The National Restaurant Association estimates that, to keep a 5% revenue margin, the average restaurant wants to raise costs by 31%, according to data compiled by the D.C.-based industry commerce group earlier this 12 months.
“Raising menu prices is typically a last resort for restaurant operators, but with the rising costs of food and labor, their operating math still has to work,” Chad Moutray, chief economist for the National Restaurant Association, told Fox News Digital.
Restaurant operators ranked inflation, advertising and marketing and hiring as their top business pain factors in the 2025 Voice of the Restaurant Industry Survey by Toast. xixinxing – stock.adobe.com
Small business owners like Michael Brafman, who operates The Sandwich Board in New York City, are involved about it.
“The basic math is whatever product you have, you divide it by .3, and that’s what the product should cost to the consumer to operate at that healthy margin,” Brafman told Fox News Digital. “If the prices continue to increase, there’s only [so much] that the consumer will be willing to pay.”
The sandwich store proprietor said he wrestled with this issue during the egg disaster.
“The basic math is whatever product you have, you divide it by .3, and that’s what the product should cost to the consumer to operate at that healthy margin,” Michael Brafman, who operates The Sandwich Board, said. weyo – stock.adobe.com
“I held out a long time to raise the [price] of our egg sandwiches,” Brafman said.
He added, “You can only get away with charging so much for an egg sandwich. . . . Nobody’s spending $17 on an egg sandwich just so you can keep your margins.”
He tacked on an additional greenback, he said, “which was very marginal, but people were concerned.”
“You can only get away with charging so much for an egg sandwich. . . . Nobody’s spending $17 on an egg sandwich just so you can keep your margins,” Brafman said. Bisual Photo – stock.adobe.com
Increasing menu costs could be an added problem when the business is new.
“It’s always a tenuous line to walk,” Brafman said. “It is a game of chicken.”
Since opening The Sandwich Board last 12 months, Brafman said he’s seen a spike in the associated fee of proteins.
“Proteins are increasing exponentially — eggs, dairy, meat, poultry, all of the core parts of the sandwich,” he said. “When a steak per pound goes from $7 to $11, that’s an unrealistic price increase.”
Passing that off to clients might spell unhealthy news for cost-conscious diners.
“I have people [who] come here repeatedly per week, and that’s the fear,” said Brafman. “How many times will they stop coming because the cost is prohibitive?”
John Loeffler, innkeeper and chef at The Inn at Gristmill Square and Waterwheel Restaurant in Virginia, said he’s been watching comparable trends play out, just at a different price tier.
“How many times will they stop coming because the cost is prohibitive?” Brafman said. Pixel-Shot – stock.adobe.com
“Beef is always a huge, huge seller for us. It is one of our more popular items,” Loeffler told Fox News Digital.
In June, a complete loin of licensed Angus ribeye price $14.75 a pound, he said. Today, it’s $17.99.
As prices climb, protecting company blissful turns into about more than the food alone, Loeffler said.
“I think that’s the challenge facing all restaurants — adding value as menu prices go up,” John Loeffler, innkeeper and chef at The Inn at Gristmill Square and Waterwheel Restaurant, said. bokan – stock.adobe.com
“How do you make money, sell people something that they feel good about and feel a value, even at a higher price point?” he said. “I think that’s the challenge facing all restaurants — adding value as menu prices go up.”
After 30 years in the business, Loeffler said he’s realized to suppose otherwise about revenue.
“I think about margins less than percentages,” he said.
His strategy often means absorbing half of the associated fee to protect the eating expertise.
“At the end of the day, we’re in the business of taking care of people, nourishing them, making them feel good … and making them feel good about spending money. That’s our job.”
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